Contractors All Risk Insurance

Builders Insurance, often included within Contractors All Risks (CAR) insurance, provides extensive protection for construction businesses and tradespeople. It covers risks such as damage, theft, or accidents on site, including ongoing works, materials, plant, and machinery throughout the construction project.

That will depend on factors such as: 

• The size of the project 

• The location of the project 

• The value of the contract 

• The level of security on the site 

• The value of the equipment you have there 

• Your claims history 

‘All risk’ is a type of policy that doesn’t name all the insured perils that are covered by the policy.  For example, fire, flood, storm, flood, etc. All risk means the policy will respond to all causes of damage to the works in progress. 

The main reason for purchasing a Contractors All Risk Insurance policy is to help protect against the work you’re undertaking on site.  

Here are some other reasons why Contractors All Risk is important: 

• If the contract holds you directly responsible for any unfinished work, it can cover you in case something goes wrong. 

• It can cover you for damage or loss to property during the construction job you are carrying out, protecting your business from potentially costly legal expenses. 

• If unforeseen events like a flood or a fire happen, the insurance can pay to have the work repaired or re-done. 

• It can cover you for damage to tools, building materials, people, and property. 

The main reason to have Contractors All Risk Insurance is to ensure that your jobs on a construction or customer site are covered and to help protect you if you need to make a claim.  

Contractors All Risk Insurance is recommended for anyone involved in construction projects, regardless of their size or scope.  

This includes: 

• Main contractors 

• Subcontractors 

• Tradespeople (such as electricians, plumbers, and carpenters) 

• Developers 

• Property owners. 

Builders Insurance and Contractors All Risks insurance are recommended for builders, contractors, subcontractors, and developers working on residential or commercial sites in the UK. Often contractually required, these policies safeguard against the many risks faced on construction sites.

A typical Contractors All Risks policy may include:

• Construction Insurance: Covers physical works against accidental loss or damage.
• Contractors Insurance: Tailored cover for contractors’ specific risks.
• Public Liability Insurance: Protects against legal liability for third-party injury or property damage.
• Employers Liability Insurance: Covers employee injury or illness claims, legally required in the UK.
• Professional Indemnity Insurance: Covers claims from professional negligence or errors.
• Portable Equipment Insurance: Protects tools and equipment on and off site.
• Contract Works Insurance: Covers contract works, temporary buildings, and materials.
• Plant and Machinery Cover: Insures owned and hired-in plant and machinery.
• Business Interruption Insurance: Covers financial losses from project delays due to insured risks.
• Client Site Insurance: Covers risks specific to client premises.

These policies typically cover risks such as:

• Fire, flood, storms, theft, vandalism, and accidental damage
• Damage to existing buildings where applicable
• Loss or damage to hired-in and owned plant
• Injuries to third parties and employees
• Legal liability and related legal expenses

Premiums are usually influenced by project type, sums insured, and risk exposure. To secure the right cover, contact an experienced broker like Jensten Insurance Brokers with details of your business and projects. They will arrange tailored quotes from multiple insurers.

Premiums usually range from 1% to 4% of the total contract value, influenced by project type, sums insured, and risk exposure. To secure the right cover, contact an experienced broker like Jensten Insurance Brokers with details of your business and projects. They will arrange tailored quotes from multiple insurers.

• Ensure cover for portable equipment and employees’ tools.
• Confirm hired-in plant is included.
• Understand exclusions related to existing structures.
• Consider business interruption cover.
• Verify public liability and employers liability insurance are in place.
• Professional indemnity insurance is separate but important for design services.
• Use insurers regulated by the Prudential Regulation Authority for reliability.

By combining these covers, UK contractors gain extensive protection tailored to the specific risks of construction projects, from small building sites to large contractor projects.